Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 27 January 2015

Sydney property to rise 8 to 12 percent in 2015

Louis Christopher of SQM Research doesn't often get too much wrong with his market forecasts.

Christopher sees 8 to 12 percent capital growth for Sydney in 2015 - and if interest rates are cut, Sydney will be in "yet another bull market for the full year".

From the latest SQM Research newsletter:

"The Darwin market is in a full blown slump. The negativity going on in Darwin, has been getting worse.

Vacancy rates have continued to rise over summer, rents on our numbers are now down 14% and are in a clear downtrend as shown by this chart
Sydney on the other hand is still looking strong.  

Over recent summers (and including this one) we have been getting the usual commentary from the usual suspects stating the market is about to slow down, is slowing down, etc. 

It is increasingly feeling like the boys who cried wolf. 

Sooner or later they will be right but right now, a slowdown currently happening in Sydney? Hardly. 

I frequently speak with trusted agents with Sydney and I spent the Xmas period doing just that. 

All were reporting active buyers even right through that Xmas/New year week. Business was strong for them.

Now invariably a slowdown will come. 

The market cannot keep growing at a rate of 15% forever. 

Our forecast for this current financial year was 8-12% and I see nothing in the market to suggest it will be below that range. 

If the rate cut comes it will be yet another bull market for Sydney for the full calendar year.

My forecast for the opening of the Sydney auction season: Clearance rates will rise from the closing levels of the high 60s in December. The Sydney auction market will most likely open up in the early to mid 70s.”